Gen Z found least likely to have retirement accounts

Published: May. 10, 2023 at 6:40 PM CDT
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MINOT, N.D. (KMOT) – Gen Z is least likely to own a retirement account as of 2020, according to the U.S. Census Bureau.

The census indicates that 401(k)s and similar plans are the most popular retirement plans at nearly 35%. Individual retirement accounts are second at 18%.

Hannah Sorensen, a senior retirement consultant for Gate City Bank, said it’s ideal to have a financial advisor, especially for young people who can compound their savings longer.

Because of the fluctuating nature of an IRA, Sorensen said the risks depend on the type of plan you choose.

“That could impact them based on, what is their age? What’s their time horizon that they’re saving for? What’s the risk tolerance for that individual person?” said Sorenson.

She said typically, the average retirement savings with an IRA is ten to fifteen percent.

When the time comes to withdraw Roth IRAs, unlike traditional ones, your withdrawals are tax-free.